Coworking in Andorra: new regulation, requirements and impact for entrepreneurs

Reading time: 9 minutes

🌍 A privileged destination for entrepreneurs and digital professionals

Since the signing and entry into force of the Double Taxation Agreements (DTA) between Andorra and Spain, and between Andorra and France — both signed in 2015 — the Principality has positioned itself as an attractive destination for entrepreneurs, freelancers and international professionals.

➤ We recommend reading Why so many entrepreneurs move to Andorra.

From 2019 onwards, with the rise of digitalisation and remote work, many digital nomads chose Andorra, drawn by a unique combination of:

• Proximity to Spain and France, with shared culture and direct access.
• A pleasant climate and a strong sense of safety.
• Institutional stability and a competitive tax system (corporate and personal income tax capped at 10%).
• High quality of life, with nature, services and leisure available all year round.

This combination placed Andorra firmly on the European map as a real alternative for entrepreneurship and modern living, especially for independent professionals and international startups.

➤ To learn what you should know before relocating, read Living and working in Andorra: what to know before you move.

⚠️ Why a physical space is mandatory in Andorra

One of the particularities of the Andorran system is that every commercial or professional activity must be linked to a single, authorised physical establishment.

📜 Legal framework

This requirement is regulated under Law 12/2013 on Commerce and the Decree of 11 July 2012, which sets out the simplified procedure for the opening and transfer of business establishments.

According to Article 5 of the law:

“All commercial activity must be carried out in a specific establishment, previously authorised by the Government and registered in the Trade and Industry Register.”

🧩 Practical implications

• Each commercial authorisation is tied to a specific physical address.
• Two different businesses cannot operate in the same premises unless there is a distinct cadastral division.
• The Trade and Industry Register is unique and identifies each establishment by owner, address and surface area.

This principle explains why, even for digital or administrative activities, a real, physical space must be accredited.

Although the law allows business registration at a private residence, this option has practical limitations:

• It requires the written consent of the property owner.
• The same address cannot be used if other businesses are already registered there.

For this reason, many freelancers and small companies saw the need to have an authorised address where they could legally establish their activity.

💼 The origin and growth of coworking in Andorra

Shared workspaces emerged as a natural response to this legal requirement.

Coworkings made it possible to register a business or commercial authorisation in a flexible, professional and legally recognised environment.

Between 2018 and 2020, such spaces multiplied — particularly in Escaldes-Engordany and Andorra la Vella — becoming essential for freelancers, consulting firms and digital startups.

Before the introduction of specific regulation, the requirements were minimal: a shared space with its own electrical control was sufficient, with no need for individual desks or minimum surface area.
This led to very diverse models, some used only for administrative domiciliation without real physical presence.

🏛️ The new regulation of shared workspaces

With the sector’s growth and to prevent misuse or “ghost” domiciles, the Government introduced two key legal instruments.

⚖️ Law 42/2022 on the Digital Economy, Entrepreneurship and Innovation

Title IV regulates shared workspaces (coworking) for the first time and establishes:

• Their legal definition.
• Recognised typologies: hot desk, fixed desk, open office and private office.
• The obligation to meet minimum space and service requirements.
• The creation of the Register of Shared Spaces and Operating Companies (EECC).

It also set a one-year adaptation period for coworkings already operating at the time of the regulation’s approval.

📜 Decree 249/2024 of 19 June, approving the Regulation on Shared Workspaces

Published in the BOPA on 26 June 2024, this decree develops the law and specifies the material and administrative requirements.

🔹 Minimum physical requirements

Each workstation must provide at least 7 m² per person, including common areas.
Each space must include:

• Personal desk and chair.
• Individual lighting and electrical outlets.
• Internet connection.
• Access to restrooms, meeting rooms and a dining area.
• Printing, cleaning and climate control services.
• Private offices with restricted access.

🔹 Administrative authorisation

Operating companies must:

• Apply for a licence from the Ministry of Economy.
• Provide proof of legal possession, floor plans, insurance and technical compliance.

🔹 Mandatory registration

Coworkings must be registered in the Official Register of Shared and Complementary Spaces, which includes details on the company, location, capacity and inspection status.

🔹 Adaptation period

Existing coworking spaces have six months to comply from the entry into force — until December 2024.

🧮 Practical effects and cost increase

This regulation, designed to enhance transparency and legal security, has had a direct impact:

• Many coworking operators had to invest in technical upgrades and new furniture.
• Prices have increased from an average of €200 per month to around €350 for certified spaces.

Despite this increase, coworking remains the best alternative for freelancers or companies that cannot use their home address as a registered office for legal or urban planning reasons.

🧭 Conclusion

The evolution of coworking in Andorra reflects the country’s transition from a traditional economy to a structured digital economy.

Shared workspaces were created to help entrepreneurs establish themselves within a legal framework requiring a unique physical address, and they have now become regulated and certified structures that promote transparency and legal security.

However, this new stage also means more control and less flexibility, with higher costs for professionals and businesses.

Ultimately, Andorra seeks a balance between innovation and administrative oversight — a process that strengthens its position as a safe, stable and attractive environment for professional growth.

👉 If you would like more information or wish to know which business regime best fits your situation, you can book a personalised meeting below or fill out the contact form.

Last updated: November 2025